Paying off mortgage

[Julie J.]

Hello all

I am looking into buying $700k home in San Francisco within the next 2 years.

I have $160k in cash to use it for downpayment or pay off current rental home.

My question is

Would I be better off paying off rental home FIRST and use the rental income to help pay for 700k house monthly payment?

OR

Should I just use the 160k as a down payment on 700k home?

If I use 160k to pay off rental home, I wouldn't have any down payment for the 700k home so I am thinking about either paying PMI or getting piggyback loan. Is this a good idea?

Any good tax advisor you could recommend too?

Thank you so much!!!!!

Julie J

[Joe Villeneuve]

Never use your money to pay off a mortgage on a rental property.  That job is the tenant's...not yours.  When the tenant does it, it's free for you...when you do it, it's an added cost to you.  You're not saving anything when you use your money to payoff a mortgage.  Al you're doing is adding to the cost since the money used is coming out of your pocket.